Scam-hit Infrastructure Leasing and Financial Services (IL&FS) has said that it has received approval from the National Company Law Tribunal (NCLT) to present its Phase 1 of the Infrastructure Investment Trust (InvIT).
With this approval, six road projects – Barwa Adda Expressway Limited, Baleshwar Kharagpur Expressway Limited, Sikar Bikaner Highway Limited, East Hyderabad Expressway Limited, Moradabad Bareilly Expressway Limited and Jharkhand Road Projects Implementation Company Limited – will be transferred to the newly formed Roadstar Infra Investments . Based on approvals from trusts, authorities and lenders under its InvIT Phase 1, IL&FS said in a filing with the stock exchanges.
“These six road projects Special Purpose Vehicles (SPVs) will be transferred to InvIT at a total valuation of ₹ 9,214 crore as determined by an independent assessor appointed as per SEBI Invitational Regulations.”
It further said, “The valuation presents a much better recovery for the creditors of these SPVs as well as the group companies that have extended loans to these SPVs.”
On shifting to InvIT, these six SPVs will move away from the debt service moratorium extended to IL&FS group companies and start repaying their loans, resulting in resolution of these SPVs.
IL&FS said it has proposed to resolve over ₹16,000 crore through InvITs in phases. This approval by the NCLT for Phase 1 is part of this process.
IL&FS will add an additional five road properties in Phase 2, upon receipt of applicable approvals.
The InvIT has already got the final registration from SEBI and all the components have been put in place to form the InvIT.
State Bank of India, Punjab National Bank, Canara Bank, Bank of India and Indian Overseas Bank are some of the major lenders to IL&FS Transportation Network Limited (ITNL), a subsidiary of IL&FS, and largely stemmed from the formation of this invitation. will be benefitted.
IL&FS InvIT will be the first of its kind vehicle for resolution of debt of lenders of ITNL and other group entities and is an important part of the overall group resolution framework adopted by the new board.
Being one of the big players in the road sector, the proposed InvIT with suitable management team and supervision has the potential to become a strong infrastructure player in the country.
The InvIT can act as a growth vehicle and add value to the initial unit holders who will be the lenders to the group.
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